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The many flavors of FICO:__Editions, versions, and variations

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Re: The many flavors of FICO:__Editions, versions, and variations

Thank for this information, this was very informative.

so the question that I have is what companies have moved to using FICO 9 as of 2019?

As I look on MyFICO scores, my scores are lower on FICO9 vs FICO 8...What would be the leading contributor to that reason?





Starting Score: 597
Current Score: 597
Goal Score: 725


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Message 151 of 153
Regular Contributor

Re: The many flavors of FICO:__Editions, versions, and variations

I'm only familiar with 8.0 from Experian, as I do have an account with them. Beacon scores are used by mortgage companies, which looks at credit at a slightly different approach.

 

TU 850   09/19

EXP 832 09/19 

Message 152 of 153
Valued Contributor

Re: The many flavors of FICO:__Editions, versions, and variations


@clipperskipper wrote:

I'm only familiar with 8.0 from Experian, as I do have an account with them. Beacon scores are used by mortgage companies, which looks at credit at a slightly different approach.


Nope.  BEACON is/was just the Equifax brandname for the FICO scores they sell.

 

BEACON 09 was at one point Equifax's name for FICO 8 , for instance. Generally, past practice was for FICO, Equifax, and Transunion to use the calendar year to identify score versions - "98", "04", "05/5.0", "08", "09"... while Experian used version numbers - "V2", "V3"...  along with their own branding - "Equifax BEACON", "TransUnion EMPIRICA", or "Experian Risk Model".  But all of these were just CRA-specific variations of actual FICO models.

 

Thankfully, the names were standardized to the current "FICO Score X" (where X is 2, 3, 4, 5, 8, or 9) a few years ago.

 

Mortgage companies use a specific set of scores, as required by Fannie/Freddie: Equifax FICO 5 (AKA BEACON 5.0), TransUnion FICO 4 (AKA Classic 04), and Experian FICO 2 (AKA Risk Model V2).

 

None of those three scores are actually mortgage-specfic - they don't use a "slightly different approach" in any sort of mortgage lending targeted way.  They are just old versions (FICO 2 is more than 20 years old, FICO 4/5 is over 15) of the FICO models that Fannie/Freddie settled on using.  As the assumptions built into them are somewhat dated, they do react differently to report changes from the newer models.

 

(Not that FICO 8 is all that current, either... the data and assumptions that it's based on are over ten years old - specifically the period of time leading right up to the "Great Recession".)

 

EQ8:850 TU8:850 EX8:850
EQ9:850 TU9:850 EX9:850
EQ5:809 TU4:789 EX2:819 - 2019-09-06
Message 153 of 153
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